Managed by Bob Bradley, USA went into the game with zero points while Egypt were on the back of an earth-shattering victory over world champions Italy.
The Pharaohs only needed to avoid a three-goal defeat as 2-0 would have seen them through to the semis, but still couldn’t make it!
Goals by Charlie Davis and Bradley’s son Michael gave USA some hope of qualifying with leaders Brazil and the all-important strike came from Clint Dempsey.
Bradley’s team went on to finish as runners-up while Egypt were sent home.
“We thought it was our last game, honestly, we just wanted to go out and give a good showing!” said USA captain Landon Donovan.
Egypt keeper Essam Al-Hadari said: “I am stressed and angry about the result. We played very well against Brazil and we beat Italy, but today we were not the same team.
“We failed to go through to the semi-finals by a one-goal margin. It's frustrating.”